Monday, May 23, 2011

Volcanic ash cloud fears send airline shares plunging

ash cloud
Airline shares fell on Monday, amid fears of potential disruption to flights caused by the dense ash cloud from an erupting Icelandic volcano.
Britain's Met Office is predicting the plume of ash from the Grimsvotn volcano would cover the Irish Republic, Northern Ireland, Scotland and parts of northern Britain by 6am on Tuesday.

Airline shares across Europe fell between 3pc and 5pc, with IAG, owner of British Airways and Iberia, down 5.09pc to 235p and Easyjet falling 4.85pc to 345.1p in London, while, in Dublin, Ryanair tumbled 5.30pc to €3.36.

Last year, ash from an Icelandic volcano caused 100,000 flights to be cancelled, disrupting 10 million passengers and costing the industry an estimated $1.7bn in lost revenues.

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